The government gives flood defences a lower priority than they deserve, according to the Association of British Insurers (ABI).
In its response to the Department of the Environment, Food and Rural Affairs (Defra) Flood and Coastal Defence Funding Review, the ABI said the government understates the benefits of flood defences and excludes many social and health costs of flooding.
It called for spending on flood defences to be increased by at least £145m a year.
Director general of the ABI Mary Francis said: "A failure by the government to respond sufficiently to our call will leave people and businesses in high risk areas with the double threat of regular flooding and limited or
expensive insurance protection. The more the government is able to lower the risk, the easier it will be for insurers to provide the cover."
Defra is currently collating the 170 responses it received and expects a full report to be released late summer.